Altoids buy gums up Wrigley's '06 profit

Shares of Wm. Wrigley Jr. Co. hit their lowest price since July 2004 last week after the company said its acquisition of Altoids and Life Savers would cut into profit slightly this year, rather than add to earnings as the company previously stated.

The announcement, made during the company's annual meeting, was an "unpleasant surprise," Credit Suisse First Boston analyst David Nelson said in a note to clients.

After it bought the mint and candy brands from Kraft Foods Inc. for $1.46 billion last summer, Wrigley said the acquisition would add to 2006 profit. CEO William Wrigley Jr. told shareholders at last week's annual meeting that the company is spending more money to "pump up" its investment in those brands. Altoids and Life Savers will add to 2007 profit, he says.